FY 2025 Results

About this update from Raspberry Pi Holdings Plc

31 March 2026   Raspberry Pi Holdings plc ("Raspberry Pi", "the Company", or "the Group")   Strong 25% EBITDA growth ahead of expectations, increased unit volumes and continued product and platform expansion.   Strong momentum carried into FY 2026.   Raspberry Pi (LSE: RPI), a leader in high-performance, low-cost computing, is pleased to announce its results for the year ended 31 December 2025 ("FY 2025").   Financial Highlights   FY 2025 FY 2024 Change Revenue ($m) 323.2 259.5           25% Gross profit ($m) 77.8 63.2           23% Gross margin (%)               24.1%               24.4% -0.3ppt Adjusted EBITDA * ($m) 46.4 37.2           25% Profit before tax ($m) 26.5 16.3           63% Basic Earnings per Share ("EPS") (c) 11.22 6.48           73% Adjusted EPS (c) 14.48 10.69           35% Cash ($m) 28.1 45.8                 (39%) *The Group uses certain measures in addition to those reported under IFRS, under which the Group reports. These Alternative Performance Measures ("APMs") are not considered a substitute for, or superior to, the equivalent statutory IFRS measures. These APMs are explained, defined and reconciled in the APM section and are applied consistently.   ·      Unit shipments were 4.0 million in H2, up 11% from 3.6 million in H1, and a total of 7.6 million for FY 2025, up 9% from 7.0 million in FY 2024. ·      Adjusted EBITDA was higher than expected at $46.4 million up 25% on the prior year (FY 2024: $37.2 million), supported by strengthening demand and favourable unit economics through H2. ·      Net cash was $28.1 million at year end (FY 2024: $45.8 million), exceeding expectations, after paying down $52.2 million of extended supplier payables over the year. Operational Highlights FY 2025 FY 2024 Change Unit volume (m) 7.6 7.0         9% Number of products released 13 22                 (41%) Number of Approved Resellers 113 117                 (3%) Engineers as % of total employees           51%           48%         6%   ·      Demand strengthened through the year across both OEMs and Authorised Resellers, with notably strong demand from USA and China. ·      For the first time, semiconductor device volumes exceeded those of boards and modules, with 8.4 million semiconductor units sold. ·      The Company demonstrated continued product momentum with 13 launches in FY 2025 (FY 2024: 22), in addition to software and platform updates. ·      Raspberry Pi Connect, which allows enterprises to cost-effectively and securely connect to IoT devices in the field, finished the year with approaching 400k connected devices. Over-the-air update functionality, a key enabler for OEM customers, was added to the platform in Q4. ·      The post-year-end launch of AI HAT+2 enables customers to run advanced AI applications, including large language and vision language models. ·      The Company successfully navigated rising DRAM costs, supported by supplier diversification, pricing adjustments and substantial inventory buffers. ·      The Company consolidated its network of Approved Resellers, Authorised Distributors and Design Partners with a focus on developing industrial and OEM sales expertise in key geographies. Outlook ·      Strong sales momentum has carried into the opening months of this year. ·      The current DRAM supply environment is expected to persist beyond this year, although we would expect some mitigation from demand elasticity in the short term and increased foundry capacity investment in the medium term. ·      While the DRAM environment limits second-half visibility, we have the inventory position, supplier relationships and pricing flexibility to navigate it effectively. Against that backdrop full-year profitability is anticipated to be in-line with market estimates, with revenue materially higher. ·      The current environment requires flexibility and fast decision-making. The Company views it as a strategic opportunity to gain market share, strengthen customer relationships, and convert disruption into competitive advantage.   Eben Upton, CEO of Raspberry Pi said: "2025 was a year of strong execution for Raspberry Pi, with accelerating demand across our global markets and adjusted EBITDA ahead of expectations. We also passed an important milestone as semiconductor shipments exceeded those of our boards and modules for the first time, reflecting our progress towards a two-franchise business.   "Our performance in FY 2025 amid DRAM inflation speaks to the strength and agility of our supply chain and the resilience of our operations. Our team has delivered new products, strengthened our software platforms, and broadened our reach across industrial and embedded markets globally.   "We have entered FY 2026 with strong momentum, underpinned by growing demand and continued progress in direct customer engagements. Combined with strategic hiring, rapid uptake of new products, and a channel whose capabilities are well aligned with the opportunities ahead, I am more confident than ever in our long-term growth trajectory."     Hybrid analyst and institutional investor briefing Eben Upton, CEO, and Richard Boult, CFO, will host a hybrid analyst and institutional investor briefing today at 09:30 BST at the offices of Linklaters, 20 Ropemaker St, London EC2Y 9AR. Those wishing to attend the event in person or online, please register via [email protected] .   This announcement contains certain forward-looking statements, including with respect to the Company's current targets, expectations and projections about future performance, anticipated events or trends and other matters that are not historical facts. These forward‐looking statements, which sometimes use words such as "aim", "anticipate", "believe", "intend", "plan", "estimate", "expect" and words of similar meaning, include all matters that are not historical facts and reflect the directors' beliefs and expectations, made in good faith and based on the information available to them at the time of the announcement. Such statements involve a number of risks, uncertainties and assumptions that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward‐ looking statement and should be treated with caution. Any forward-looking statements made in this announcement by or on behalf of Raspberry Pi speak only as of the date they are made. Except as required by applicable law or regulation, Raspberry Pi expressly disclaims any obligation or undertaking to publish any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.     For more information, please contact: Raspberry Pi Holdings plc Eben Upton, CEO, Richard Boult, CFO Via Alma Strategic Communications Andy Bryant - IR [email protected] Alma Strategic Communications T: +44 (0)203 405 0205 Josh Royston, Caroline Forde, Hannah Campbell, Emma Thompson [email protected]   Notes to Editor Headquartered in Cambridge, UK, Raspberry Pi's mission is to put high-performance, low-cost, general-purpose computing platforms in the hands of enthusiasts and engineers all over the world. Raspberry Pi is a full-stack engineering organisation, with research and development capabilities spanning the entire value chain, from semiconductor IP development, through semiconductor and electronic product design to software engineering and regulatory compliance. The high performance, low cost, and physical robustness of Raspberry Pi products make them suitable for a wide range of applications, across three distinct markets: Industrial and Embedded, Enthusiast and Education, and Semiconductors. To date, over 75 million units have been sold.       CEO's statement Dr Eben Upton CBE FREng Chief Executive Officer and Founder   "For the first time, semiconductor device volumes exceeded those of boards and modules - a milestone on our journey towards a two‑franchise business."   Another exceptional year for Raspberry Pi 2025 was an exciting year for Raspberry Pi. It was a year defined by delivery and by consolidation: completing the current generation of our core products, developing our semiconductor offering and refining the channel relationships that allow us to reach millions of customers around the world. With the release of the Raspberry Pi 500+ all‑in‑one PC in September, we rounded out our fifth-generation core product line up, freeing our engineering team to focus on work that will in due course lead to Raspberry Pi 6. An updated version of our RP2350 microcontroller, released in August, delivered reliability and performance enhancements, and was accompanied by new variants that integrate non-volatile memory directly into the chip package. These developments were complemented by accessory releases, including Radio Module 2, Camera Module 3 Sensor Assemblies, and a 5" variant of Touch Display 2. Our expanding range of board, module, semiconductor and accessory offerings make it easier than ever for our customers to engage with Raspberry Pi technology, and for OEMs to integrate it into their own products. Our continued growth is made possible through the efforts of our global ecosystem of distribution partners. Over the last year we have consolidated our network of Approved Resellers, Authorised Distributors and Design Partners with a focus on developing industrial and OEM sales expertise in key geographies. Delivering through transition 2025 was our first full year as a public company following our listing on the London Stock Exchange in June 2024. The transition has been a rewarding one: regular dialogue with our investors has deepened our understanding of the fundamentals of our business and sharpened our focus on long-term value creation. Our board and module unit shipments reached 4.0 million in the second half, bringing total shipments for the year to 7.6 million, an increase of 9% year on year, as demand strengthened markedly through the year. We saw robust demand in key international markets, particularly the United States and China. Adjusted EBITDA of $46.4 million exceeded expectations, supported by favourable unit economics in the second half of the year. We ended the year with net cash of $28.1 million after the repayment of $52.2 million of previously extended supplier payables, demonstrating our continued balance sheet strength and prudent approach to capital management. We reached an important strategic inflection point in 2025. For the first time, shipments of our microcontroller devices, RP2040 and the RP2350 family, exceeded those of our boards and modules, with a total of 8.4 million units shipped. This milestone represents a key step forward in our ambition to build Raspberry Pi into a two‑franchise business, with both electronic products and semiconductors making significant contributions to volumes, revenues, and profitability. Innovation and product execution Technical innovation remains the linchpin of our success and in 2025 we launched 13 new products (2024: 22). These new releases delivered targeted support for an ever-growing range of customer applications. Industrial‑temperature compute modules and new variants of our RP2350 microcontroller extended our reach into challenging environments and demanding deeply embedded use cases. Our premium keyboard computer Raspberry Pi 500+ was welcomed with excitement by enthusiasts and we announced a partnership with NComputing, a global leader in end-user computing solutions, to bring it to the enterprise market. Responding to demand from our microcontroller customers, we launched our first standalone wireless module in June. Building on our heritage of modular design, Radio Module 2 offers integrated Wi-Fi and Bluetooth radios from our partner Infineon, a compact form factor, and a low-pin-count host interface. These design choices simplify integration, reduce external component count, and eliminate the expense and complexity of radio certification, streamlining our customers' journey from prototype to production. Our software offering continues to evolve alongside our hardware. The Pico SDK and its Visual Studio Code integration received major updates, while Raspberry Pi OS (Trixie) introduced performance and security improvements, and an enhanced desktop user experience. Raspberry Pi Connect for Organisations added enterprise features for secure device management and remote access, allowing OEM customers to simply and securely maintain large fleets of devices in the field. Connect now supports hundreds of thousands of devices in the free tier and thousands more in its paid-for tier and continues to see robust month‑on‑month growth. At the end of the year, we released over‑the‑air ("OTA") update capability for Connect. Support for OTA updates of IoT device firmware is becoming a regulatory requirement in many jurisdictions, and we see this development as a natural extension of our strategy to eliminate complexity for our OEM customers. Artificial intelligence was a defining technology theme of 2025, and edge AI represents a significant opportunity for Raspberry Pi. Our platforms allow OEMs to deploy AI applications at the edge of the network, delivering improved latency, privacy and cost compared to cloud-hosted alternatives. We continue to work closely with model developers and partners to ensure that their workloads run performantly on our platforms, and are confident that edge AI on Raspberry Pi will play a key role in the next decade of digital transformation. Expanding markets and the two‑franchise model The continued growth of our semiconductor business marks a new era for Raspberry Pi. Our RP2040 and RP2350 microcontrollers sit at the heart of a thriving ecosystem of partner‑developed products. For our existing board and module OEM customers, our semiconductor devices represent a vital next rung on the scaling ladder, enabling custom designs that can serve a vast range of industrial and embedded applications. We continue to support these customers by providing the engineering quality, transparent competitive pricing and extensive technical collateral that has become our hallmark. We continue to see the synergy between our two franchises as a powerful driver of long‑term growth. Our boards and modules act as the shop window for our semiconductor devices, while our semiconductor devices allow us to build ever more capable and efficient boards and modules. As we move along this trajectory, our aspiration is for semiconductor volumes to grow by orders of magnitude, transforming Raspberry Pi from a company that sells millions of boards and modules each year into one that also ships billions of semiconductor devices. Go-to-market strategy We continue to strengthen our go-to-market strategy, working with our Approved Reseller and Authorised Distributor partners, and directly with larger OEMs, to secure the design wins which will deliver medium-term unit sales growth and improved gross profit margins. In the year, our number of Authorised Resellers fell to 113 (2024: 117). After adding a net 13 new Approved Resellers in 2024, we took the opportunity this year to refine our distribution strategy, retiring underperforming partners and adding new ones to drive industrial and OEM growth in key geographies. Key additions in the year included HT Componenti Srl in Italy, Icompplus Electronics S.L. in Spain, eukleed in France and Electronica Elemon SA in Argentina. Our "Board to Board" initiative, launched after the 2024 IPO, continues to target larger-scale design wins via direct senior-level engagement at major OEMs. This more intensive approach provides deeper insight into prospective customers' technical and operational needs and allows us to leverage existing adoption of Raspberry Pi technology in prototyping and production automation into scaled OEM adoption. In the year, we held more than 20 C-Suite level discussions, supporting customers in addressing critical challenges around security, connectivity and supply chain resilience. These engagements have increased awareness and understanding of the Raspberry Pi value proposition at senior levels in the target organisations and enhanced our profile as a strategic partner rather than solely as a technology provider. Numerous project discussions remain ongoing, most notably with OEMs in the smart home and defence and aerospace sectors. Tariffs Our sales to US customers remain strong, with revenue growing 56% year on year. Our exclusively UK-manufactured boards and modules have been subject to lower competitive tariffs than our predominantly China‑manufactured competitors. Our major US distribution partners have worked closely with us to maintain attractive pricing for our products. In our education and enthusiast market, we expect a meaningful competitive benefit to arise from the abolition of the de minimis tariff exemption on small, personal shipments into the US. DRAM supply Global DRAM markets tightened significantly through 2025 and into 2026 due to AI-driven demand. We have mitigated the impact on our business through supplier diversification and targeted pricing adjustments and continue to benefit from inventory acquired at lower historical prices. These actions have supported supply continuity and profitability, and create potential opportunities for market share gains against competitors who face sourcing constraints. We expect the current supply environment to persist beyond this year, although we would expect some mitigation from demand elasticity in the short term and increased foundry capacity investment in the medium term. Around one-third of our boards and modules by volume either use no DRAM (Raspberry Pi Pico products), or older LPDDR2 DRAM, for which we maintain a separate, substantial inventory buffer; these products are not exposed to DRAM market volatility. Our people We continue to make disciplined investments in our sales and business development capacity, building a commercial organisation that can identify and win OEM opportunities at scale. We are strengthening our engineering, finance, legal and communications functions, while leveraging automation to drive operational efficiency, manage costs and support sustainable long-term growth. At the end of 2025, the permanent headcount was 140 employees (end December 2024: 132 employees) with 51% (end December 2024: 48%) in engineering roles. After seven years with Raspberry Pi, Richard Boult, our CFO, announced in October that he would be stepping down from his role before the end of 2026. Richard has been instrumental in maturing the finance function at Raspberry Pi and has made an invaluable contribution to the growth and development of the Company during a period of rapid change, and most significantly through the IPO process. I am deeply grateful for his friendship and leadership over the past half-decade. The succession process is well-advanced, with strong candidates identified, and we expect to confirm an appointment in the second half, ensuring an orderly and seamless transition. Post the year end we were pleased that Tim Mamtora joined as Chief Operating Officer. Formerly CTO at Imagination Technologies, he will oversee engineering operations, IT, cybersecurity, facilities, warehousing and general administration. Roadmap Raspberry Pi continues to execute its development roadmap as planned. Major platform releases typically arrive every four to five years, and as we enter the middle period of the fifth generation, we are allocating more resource to the design of the next platform. When it arrives, Raspberry Pi 6 will embody the same philosophy that has guided every generation before it: significant improvements in performance, efficiency and usability, and an emphasis on continuity in the software stack. This approach lowers execution risk and ensures that every generation of Raspberry Pi hardware can be supported by a single codebase and single software team. On the microcontroller front, we continue to evolve the RP2 architecture, exploring opportunities to scale performance, reduce cost and integrate additional functionality. A key lesson from our compute module business is that even small reductions in the engineering effort required to use our products drive radical increases in the rate of adoption; our semiconductor roadmap reflects this insight. A decade and a half after shipping the first Raspberry Pi computer, we have built a cost‑effective, high‑performance general-purpose computing platform for professional engineers and innovators everywhere. We continue to learn from our customers, and to build the products, and the organisational capabilities, that will underpin our future success. Outlook We left 2025 with strong momentum in our core electronic products business - the second half was stronger than the first, and within that the fourth quarter stronger than the third - and have seen this momentum continue into 2026. Despite price increases associated with the increase in DRAM costs, we continue to see robust demand from our OEM and enthusiast customer bases. While the DRAM environment limits second-half visibility, we have the inventory position, supplier relationships and pricing flexibility to navigate it effectively. We remain confident in our ability to execute and view the current market environment primarily as an opportunity rather than a threat. It remains an immense privilege to lead Raspberry Pi and to work with such extraordinary colleagues, partners and investors. Together we are building the infrastructure for a more connected, intelligent and sustainable world and we are only at the very beginning of the Raspberry Pi journey. Dr Eben Upton CBE FREng Chief Executive Officer and Founder 30 March 2026   Financial review 2025 was a year of good progress as the excess inventory purchased by sales channel partners in 2024 cleared and demand returned to expected levels. Unit sales continued to improve through 2025, accelerating in the second half, with H2 2025 board unit volumes increasing 11%. The growth has been in higher-margin boards leading to an 18% increase in profit per board and a 23% increase in the gross profit. Costs grew at a similar rate to gross profit resulting in a 25% increase in adjusted EBITDA and a 35% increase in adjusted operating profit.  Through the period we continued to invest in product development, with capital expenditure of $18.2 million consistent with our plans and guidance. This investment will ensure a continued programme of new products and semiconductors. At the same time we have maintained close control of our finished good inventory while deploying capital to ensure that our stocks of memory and processor components were sustained to ensure resilience in the face of anticipated supply chain disruption. As part of that resilience we have continued to focus on our cash resources. We reinforced our position in early 2025 by increasing our RCF to $80 million and extending its term to 2029. At the end of 2025 we had $28.1 million of cash and no debt. $ million 2025 2024 % change Revenue                   323.2                   259.5                 25% Gross profit                     77.8                     63.2                 23% Gross margin (%) 24.1% 24.4%                 -0.3ppt Other income                        0.3                          -                 100% Adjusted R&D costs                   (11.2)                      (8.7)                 (29%) Adjusted administration costs                   (20.5)                   (17.3)                 (18%) Adjusted EBITDA                     46.4                     37.2                 25% Depreciation and amortisation                   (10.5)                   (10.7)                 2% Adjusted operating profit                     35.9                     26.5                 35% Employee share schemes                      (7.9)                      (6.0)                 (32%) Non-recurring costs                          -                      (2.9)                 (100%) Statutory operating profit                     28.0                     17.6                 59% Sequential performance                                   2025 2024 H1 H2 H1 H2   Direct units (m) 2.7 3.1 2.4 2.5   Royalty unit (m) 0.9 0.9 1.3 0.8   Total units (m) 3.6 4.0 3.7 3.3   Microcontroller units (m) 4.5 3.9 2.2 3.5   ASP ($) 46.4 47.0 46.9 39.2   Gross profit per board ($) 8.0 9.5 8.3 6.4   Accessory profit per board ($) 1.1 1.7 1.1 1.3   Gross profit ($m) 33.2 44.6 34.2 29.0   Adjusted EBITDA ($m) 19.4 27.0 20.9 16.3   Basis of preparation of the financial statement These condensed consolidated financial statements are the second Annual Report for Raspberry Pi Holdings plc, the Group formed in May 2024. The comparator period for these statements ("2024") has been prepared as if the Group had been in place for the entirety of the 2024 financial year. For further information see Note 2 of the condensed consolidated financial statements. Unit sales of SBCs and compute modules and microcontrollers Total board sales volumes increased by 9% compared to 2024 with growth in sales through the direct channel more than offsetting the decline in royalty sales. Million units 2025 2024 % change Unit sales in direct channel 5.8 4.9                 18% Unit sales through licensees 1.8 2.1                 (14%) Total unit sales 7.6 7.0                 9% Direct sales share of total           76%           70%                 +6ppt Licensee share of total           24%           30%                 -6ppt Microcontroller units 8.4 5.7                 47% Unit sales for the year improved across almost all product variants with particularly strong underlying growth in Raspberry Pi 3 and Raspberry Pi 4. There was underlying growth in Raspberry Pi 5 and growth enhanced overall by a full year of sales in 2025 of the 2GB and 16GB variants, launched during 2024, and the launch at the end of 2025 of Raspberry Pi 5 1GB. Unit sales of compute modules were flat compared to 2024 which had a particularly strong Q1 as the last back orders of the 2023 supply chain shortage were fulfilled. Sales of Pico and Pi Zero were flat in total. Royalty sales of Raspberry Pi 5 by our licensee, Premier Farnell, were lower year on year after a strong Q1 2024 when unit sales benefited from the recent launch of the Raspberry Pi 5. Sales of Raspberry Pi 4 increased substantially, in line with the increases in the direct sales channel. Direct unit sales continued to grow sequentially each half from the start of 2024 as the excess inventory accumulated in channel in H1 2024 was utilised. Direct sales in H2 2025 were 15% up on H1 2025, with circa 33% growth in compute module and Raspberry Pi 4 sales, 32% growth of Raspberry Pi Zero 2 and flat sales of Raspberry Pi Pico, Raspberry Pi 5 and Raspberry Pi 3. For the year, direct unit sales were 76% of total board unit sales in line with our expectations of a share of 70-80%. Microcontroller unit sales, which include standalone product sales and those incorporated in other Raspberry Pi products such as Raspberry Pi Pico boards, increased by 47% to 8.4 million units (2024: 5.7 million units) aided by the new products RP2350 and Raspberry Pi Pico 2 and the continuing adoption of RP2040 including individual orders for over 100,000 units. Revenue Revenue increased by $63.7 million, or 25%, from $259.5 million for 2024 to $323.2 million for 2025. The split by revenue category was as follows: $ million 2025 2024 % change Products 247.0 181.2           36% Components 60.2 61.2                 (2%) Royalties 15.0 15.9                 (6%) Publishing 1.0 1.2                 (17%) 323.2 259.5           25% Product revenues are generated by supplying SBCs, compute modules, accessories and semiconductors directly to Approved Resellers and original equipment manufacturers ("OEMs"). Royalties are earned per unit on products that Premier Farnell has manufactured (Pi 5) or sold (Pi 4) by licensing our designs and trademarks. The increase in direct product sales largely relates to the 39% increase in sales of SBCs and compute modules combined with a 26% growth in the sale of accessories. Direct sales revenue grew substantially ahead of unit growth with ASP increasing 8%, furthermore unit growth was significant in the higher value Raspberry Pi 4 and Raspberry Pi 5 boards. Component sales represent the sale of principally memory and processor chips, used in the manufacture of Raspberry Pi products for our licensee which are then sold to end customers. Average selling price ("ASP") per board ASP increased by $3.4 from $43.3 in 2024 to $46.7 in 2025 due to an increase in the mix of higher-priced Raspberry Pi 5 boards, especially those with 8GB of memory (launched in Q4 2023), and more compute module 5s. Gross profit per board $ per board 2025 2024 % change SBCs and compute modules 8.7 7.4           18% Board share of gross profit           85%           82% +3ppt Accessory margin per board 1.4 1.2           17% SBC and compute module gross profit per board increased by 18% from $7.4 to $8.7 due to the planned $5 per unit reduction in the cost of the processor chip in the Raspberry Pi 5 for the initial 2 million processor chips and a shift in the mix of boards to higher-margin variants such as Raspberry Pi 4 and Raspberry Pi 5. In H2 2025 we have seen substantial and continuing increases in the cost of LPDDR4 memory used in our fourth and fifth-generation boards which represent approximately 65% of our unit sales in 2025. In making these boards we have utilised 24 million gigabytes of DRAM with an average of 4.9 GB per board, representing 21% of the cost of direct boards. The gross profit of accessories increased by 28% to $10.9 million. Of the gross profit from accessories, cameras accounted for 19%, displays 15%, power supplies 20%, SSD and SD memory 10% and AI HATs 10%, with cables, cases and compute module accessories being the majority of the remainder. Growth was notable in cameras, memory, AI HATs and displays, while flat in cases, cables, mice and kits. Overall, the accessory profit per board improved to $1.4 per board, ahead of our target of $1 per board. Gross profit $ million 2025 2024 % change SBCs and compute modules 66.3 51.7           28% Accessories 10.9 8.5           28% Microcontrollers, publishing and others 0.6 3.0                 (80%) Reported gross profit 77.8 63.2 23% Gross profit increased by $14.6 million, or 23%, from $63.2 million in 2024 to $77.8 million in the current period due to higher unit sales and profit per board together with a strong performance from sale of accessories. The microcontroller results in 2024 benefited from a release of $3.0 million of provisions made for an excess quantity of inventory in 2023. Gross margin reduced to 24.1% (2024: 24.4%) as a result of the lower proportion of higher‑margin licensee revenues. Adjusted research and development costs Adjusted research and development expenses is a non-IFRS measure used by the Board and management to monitor the Group's performance. $ million Year ended 31 December 2025 Year ended 31 December 2024 Research and development expenses 22.5 17.9 Amortisation (net of capitalised amortisation) (6.8) (6.3) Employee share schemes (4.5) (2.9) Adjusted research and development expenses 11.2 8.7 Adjusted research and development expenses increased 29% to $11.2 million for the year ended 31 December 2025 from $8.7 million in the prior year. This reflects higher investment in a number of areas that do not meet our capitalisation requirements, including ongoing development of the software that runs on our boards and refinement of already launched products. The engineering cost of these items is therefore expensed. Total research and development expenses rose by 26% to $22.5 million (2024: $17.9 million). This includes share‑based payments costs for engineering staff which are excluded from the adjusted measure as they are non-cash items and the charges are not comparable across periods due to fluctuations arising the listing process. Amortisation of launched product development costs, net of capitalised amounts, also increased to $ 6.8 million ( 2024 : $ 6.3 million), reflecting a growing portfolio of product developments that are now in production. Adjusted administrative costs $ million Year ended 31 December 2025 Year ended 31 December 2024 Administrative expenses 27.6 27.7 Depreciation (net of capitalised depreciation) (3.7) (4.4) Employee share schemes (3.4) (3.1) Non-recurring costs - (2.9) Adjusted administrative expenses 20.5 17.3 Adjusted administrative expenses increased to $ 20.5 million for the year ended 31 December 2025 from $ 17.3 million in the prior year principally due to higher staff costs. The strong results for the year led to higher performance-related payments compared to 2024 and account for much of the adjusted expense increase. Of the remainder, there was an increase in staff costs primarily due to the scaling of the Senior Management Team and a full year of higher listed company-related costs. Total administrative expenses dropped by 0.4% to $ 27.6 million (2024: $ 27.7 million), due to the absence of non-recurring costs. Depreciation and amortisation $ million Year ended 31 December 2025 Year ended 31 December 2024 Depreciation of PPE and leased assets (net of capitalised depreciation) 3.7 4.4 Amortisation (net of capitalised amortisation) 6.8 6.3 Depreciation and amortisation 10.5 10.7 Depreciation of PPE and leased assets decreased by 16% to $ 3.7 million in 2025 from $ 4.4  million in 2024 . Amortisation of intangibles charged to the income statement increased by 8% to $ 6.8 million in 2025 from $ 6.3 million in 2024 , with a full year's amortisation of RP2350, launched in August 2024, offset by a reduced charge for semiconductor products after a review concluded that their useful lives should be increased to eight years. Total depreciation and amortisation decreased by 2% to $10.5 million in 2025 from $10.7 million in 2024. Finance costs and finance income Finance costs and income have stayed level year on year. Bank interest costs are unchanged year on year despite an increase in the facility from $40 million to $80 million due to a significant reduction in the margin charged. Included in finance costs is a charge of $1.3 million (2024: $1.2 million) being the unwinding of the imputed discount representing the time value of money on extended payables. Share-based payments A share-based payment charge of $8.7 million (2024: $4.7 million) was recorded in the year together with a credit of $0.8 million (2024: $1.3million charge) in respect of changes in the provision for employment taxes payable on these schemes when they crystallise. The Group has three main schemes in operation: ·      a market value option scheme awarded in June 2024 which is in respect of options over 11 million shares and runs until June 2027, with the fair value of those options being spread over the three-year life. This scheme was intended to retain and motivate staff in the transition from private to public ownership. The charge in 2025 was $5.2 million; ·      a four-year RSU programme for staff, the first grant of which was made in 2025 with shares released evenly each quarter. The fair value (the market value of a share at date of award) of each quarter's tranche is charged evenly over the period to its date of release. The income statement charge is therefore at its greatest in the first year and reduces in subsequent years. It is intended that the similar awards will be made for each financial year. The charge in 2025 was $2.8 million; and ·      a three-year performance share scheme for the Senior Management Team based on a percentage of salary. The amount of award granted depends on achievement against EPS and TSR targets. The charge in 2025 was $0.6 million. A provision for employment taxes for each of these schemes is required based on the intrinsic value of the awards granted. The intrinsic value moves with the share price of the Group. As the share price at the end of 2025 was lower than the price at the end of the last reporting date or at the time of grant the provision has reduced, leading to a credit of $0.8 million in the income statement. Non-recurring costs Costs of $2.9 million were charged to the income statement in 2024 in respect of fees and charges arising from the listing process which were incurred to prepare the business for operation after listing. There were no comparable costs in 2025 or other items identified as non-recurring. Taxation The total effective tax rate for 2025 was 18.1%, lower than the 25.0% rate due to the treatment, after receiving the appropriate patent, of RP2040 and Raspberry Pi 5 profits under the UK patent Box regime and the release of tax provisions made in respect of taxation in 2024 after the receipt of further confirmatory external advice. Adjusted EBITDA and adjusted operating profit $ million Year ended 31 December 2025 Year ended 31 December 2024 Operating profit 28.0 17.6 Amortisation and depreciation 10.5 10.7 EBITDA 38.5 28.3 Employee share schemes 7.9 6.0 Non-recurring costs - 2.9 Adjusted EBITDA 46.4 37.2 Amortisation and depreciation (10.5) (10.7) Adjusted operating profit 35.9 26.5 Adjusted EBITDA for the year ended 31 December 2024 was $46.4 million, up 25% on $37.2 million in the prior year, primarily due to a 23% increase in gross profit offset only in part by a 23% increase in costs. Adjusted operating profit increased to $35.9 million (2024: $26.5 million), reflecting the growth in adjusted EBITDA and the flat depreciation and amortisation charges. Operating profit and profit after taxation for the period Reported operating profit for the period was $ 28.0 million ( 2024 : $ 17.6 million). The results for 2024 included $2.9 million of one-off charges in respect of the IPO and charges for share‑based payments that included the charges for the pre-IPO share-based payment scheme that ended in June 2024 and six months of costs in respect of post-IPO share schemes . Profit after taxation was $ 21.7 million ( 2024 : $ 11.7 million), an increase of $ 10.0 million primarily reflecting the improvement in reported operating profit identified above. Earnings per share Basic earnings per share for the year ended 31 December 2025 was 11.22 cents, up from 6.48 cents in the prior year, reflecting a higher profit after tax of $21.7 million (2024: $11.7 million). Diluted earnings per share was 11.00 cents (2024: 6.20 cents), with the impact of unvested employee share options increasing the weighted average number of shares to 197.3 million. Adjusted basic earnings per share, which excludes the impact of non-recurring costs and share‑based payments net of tax, was 14.48 cents (2024: 10.69 cents) an increase of 35% in line with the increase in adjusted operating profit. Dividends No dividends have been proposed. The current medium-term expectation is that cash generated will be reinvested into the business. Cash flows from operations $ million 2025 2024 Adjusted EBITDA 46.4 37.2 Decrease/(increase) in inventories 11.2 (51.1) (Increase)/decrease in trade and other receivables (21.9) 3.5 (Decrease)/increase in trade and other payables (34.9) 13.0 (Decrease)/increase in provisions (0.2) 0.3 Non-recurring costs - (2.9) Interest received 0.6 1.1 Tax credit received 9.4 - Tax paid (4.1) (4.2) Other non-cash movements (0.3) (0.1) Net cash flows generated from/(used in) operating activities 6.2 (3.2) Inventory Inventory of finished goods decreased to $31.2 million (2024: $63.8 million) due to increasing demand for products and the adjustment of production to reflect the revised levels of demand. The inventory of boards is now at about one month of sales and is probably at the lowest possible level. Component inventory has increased by $21.2 million with stock of memory held for future production being the principal cause of the increase. Stocks of processor chips have remained at similar levels to 2024. Taken with confirmed orders for delivery, the Group has sufficient supply of DRAM for the first half of 2026 across most memory variants and has sufficient memory to meet expected demand for almost the whole of 2026 in respect of Raspberry Pi 3, Raspberry Pi Zero and the 1GB and 2GB variants of Raspberry Pi 4, Raspberry Pi 5 and compute modules. Other working capital movements Payables decreased compared to December 2024 as the payables with extended payment terms for memory and processor chip purchases were repaid. The extended payable balance at December 2024 was $52.2 million. The increase in receivables reflected the higher level of product sales in December compared to a year earlier together with a high level of component sales in the last month of 2025. Tax credit received comprises Research and Development Expenditure Credits received in 2025 in respect of the 2023 and 2024 financial years. Investing activities - capital expenditure $ million 2025 2024 Plant and equipment 1.5 1.2 Office and computer equipment 0.2 0.5 Leasehold improvements 0.1 0.5 Tangible fixed assets 1.8 2.2 Internally generated intangibles and intangibles in the course of development 20.6 26.6 Net other intangibles acquired 3.0 0.3 Intangible assets 23.6 26.9 Leases (0.1) - Total capital additions 25.3 29.1 Non-cash additions (7.1) (6.0) Total cash capital expenditure 18.2 23.1 Capital additions for the year to 31 December 2025 were $25.3 million (2024: $29.1 million), including expenditure on intangible assets of $23.6 million (2024: $26.9 million). This included work on new products and further semiconductor development for use in future boards. In addition to the external purchases the capital expenditure includes the capitalisation of engineering salaries of $6.8 million (2024: $8.1 million). Where development licences are purchased for use in new products, these are initially capitalised in intangibles and then amortised. The amortisation amounting to $6.8 million ( 2024 : $6.0 million) and depreciation of $0.3 million (2024: $nil) as they relate to the development of a new product are then capitalised in a product development asset for that project. Of its nature, this amortisation and depreciation is non-cash and is shown as n on-cash additions. Cash and facilities Cash at 31 December 2025 was $ 28.1 million ( 31 December 2024 : $ 45.8 million). On 5 March 2025, a new Revolving Credit Facility with four banks on terms more suitable to a listed group and at substantially reduced pricing was entered into replacing the existing facility. Available funds were increased to $80 million (2024: $40 million) and with a term until 4 March 2029 ( 2024: 24 April 2027). The facility remains undrawn. Related party transactions Controlling Shareholder definition and related party transactions are disclosed in Notes 25 and 26 of the condensed consolidated financial statements. Post-balance sheet events As set out in Note 27, the Group has revised its long-term supply agreement with Broadcom to increase the overall value of processor chips purchased and extend the period of the commitment to five years from the three years previously remaining. Richard Boult Chief Financial Officer 30 March 2026       Condensed consolidated statement of comprehensive income For the year ended 31 December 2025   $ million Notes Year ended 31 December 2025 Year ended 31 December 2024 Revenue 3 323.2 259.5 Cost of sales (245.4) (196.3) Gross profit 77.8 63.2 Other income 0.3 - Research and development expenses 4 (22.5) (17.9) Administrative expenses 5 (27.6) (27.7) Operating profit 28.0 17.6 Finance income 8 1.0 1.1 Finance cost 8 (2.5) (2.4) Profit before taxation 26.5 16.3 Taxation charge 9 (4.8) (4.6) Profit for the year 21.7 11.7   Operating profit                     28.0                     17.6 Amortisation and depreciation 7                     10.5                     10.7 EBITDA                     38.5                     28.3 Employee share schemes 24                        7.9                        6.0 Non-recurring costs 5                          -                        2.9 Adjusted EBITDA                     46.4                     37.2   Earnings per share (cents) Basic 10                   11.22                     6.48 Diluted 10                   11.00                     6.20 The profit for the year is attributable to the shareholders of Raspberry Pi Holdings plc and is derived from continuing operations. There are no recognised gains or losses other than those presented above. The accompanying notes are an integral part of these condensed consolidated annual financial statements.   Condensed consolidated statement of financial position As at 31 December 2025 Registration number 15557387   $ million Notes At 31 December 2025 At 31 December 2024 Assets Intangible assets 11                     83.2                     73.2 Property, plant and equipment 12                        3.9                        4.5 Right-of-use assets 13                        8.6                        6.1 Other non-current assets                        1.4                        2.3 Total non-current assets                     97.1                     86.1 Inventories 14                   145.3                   156.7 Trade and other receivables 15                     59.5                     36.2 Current tax receivables 15                        1.4                        6.6 Cash and cash equivalents 16                     28.1                     45.8 Other financial assets 20                        0.2                          - Total current assets                   234.5                   245.3 Total assets                   331.6                   331.4 Liabilities Trade and other payables 17                   (60.6)                   (96.1) Provisions                      (0.3)                      (0.7) Lease liabilities 18                      (0.8)                      (1.4) Total current liabilities                   (61.7)                   (98.2) Provisions                      (0.9)                      (1.9) Other non-current liabilities                      (6.9)                      (6.0) Lease liabilities 18                      (8.1)                      (4.8) Deferred tax liabilities                   (13.2)                   (10.1) Total non-current liabilities                   (29.1)                   (22.8) Total liabilities                   (90.8)                 (121.0) Net assets                   240.8                   210.4 Shareholders' equity Share capital 22                        0.8                         0.8  Share premium 22                     34.0                      32.4  Merger reserve 22                 (221.9)                 (221.9) Share-based payments 22                     10.6                         2.7  Retained earnings 22                   417.3                    396.4  Total shareholders' equity                   240.8                    210.4  The accompanying notes are an integral part of these condensed consolidated annual financial statements. The financial statements were approved by the Board of Directors and authorised for issue on 30 March 2026. They were signed on its behalf by: Dr Eben Upton CBE FREng                              Richard Boult Chief Executive Officer and Founder                  Chief Financial Officer Condensed consolidated statement of changes in equity For the year ended 31 December 2025   $ million Notes Share capital Share premium Share-based payments Merger reserve Retained earnings Total At 1 January 2024            -             65.4                  1.3            -             92.5     159.2 Profit for the year            -                 -                   -             -             11.7        11.7 Share-based payments 23            -                 -                  4.7            -                1.6          6.3 Shares issued            -               0.8                   -             -                  -           0.8 Share reorganisation A     288.1          (66.2)                   -    (221.9)                 -             - Share capital reduction A   (287.3)                -                   -             -           287.3            - Share listing proceeds B            -             40.0                   -             -                  -        40.0 Share issuance costs B            -             (7.6)                   -             -                  -        (7.6) Share scheme settlement            -                 -                (3.3)            -                3.3            - At 31 December 2024 22          0.8            32.4                  2.7    (221.9)          396.4     210.4 Profit for the year            -                 -                    -             -             21.7        21.7 Share-based payments 23            -                 -                   8.7             -              (1.6)          7.1 Exercise of share awards            -               0.2                (0.8)            -                0.8          0.2 VAT recovered on IPO-related share issuance costs C            -               1.4                   -             -                  -          1.4 At 31 December 2025 22          0.8            34.0               10.6 (221.9)          417.3     240.8   A Share capital reorganisation and reduction On 23 May 2024, Raspberry Pi Holdings plc acquired Raspberry Pi Ltd in a share-for-share exchange valued at $288.1 million. A shareholder resolution reduced the share capital to its nominal value, increasing distributable earnings by $287.3 million. Previous share capital and $66.2 million of share premium were derecognised and recorded in merger reserve. B London Stock Exchange listing On 11 June 2024, Raspberry Pi Holdings plc listed on the London Stock Exchange, issuing 11.2 million shares at £2.80 each. Net proceeds of $32.4 million after costs of $7.6 million were deducted from equity. C VAT recovered on IPO-related share issuance costs In 2025, the Group recognised $1.4 million of VAT on 2024 listing costs as recoverable following the VAT registration of the parent company. As the original costs were charged to share premium, the recoverable amount has been credited to the share premium account. The accompanying notes are an integral part of these consolidated annual financial statements.   Condensed consolidated statement of cash flows For the year ended 31 December 2025 $ million Notes Year ended 31 December 2025 Year ended 31 December 2024 Cash flows from operating activities Operating profit                     28.0                     17.6 Adjustments for: Amortisation and depreciation 7                     10.5                     10.7 Gain on lease assignment 13                      (0.3)                          - Prepaid manufacturing charges                        0.7                        0.7 Employee share schemes 24                        7.9                        6.0 Research and development tax credit                      (0.5)                      (0.8) Fair value gain on derivatives                      (0.2)                          - (Decrease)/increase in provisions                      (0.2)                        0.3 (Increase)/decrease in trade and other receivables                   (21.9)                        3.5 Decrease/(increase) in inventories                     11.2                   (51.1) (Decrease)/increase in trade and other payables                   (34.9)                     13.0 Cash flows from operating activities                        0.3                      (0.1) Interest received 8                        0.6                        1.1 Tax credit received 15                        9.4                          - Tax paid 15                      (4.1)                      (4.2) Net cash flows generated from/(used in) operating activities                        6.2                      (3.2) Cash flows from investing activities Purchase of intangible assets                   (16.5)                   (20.9) Purchase of property, plant and equipment 12                      (1.8)                      (2.2) Lease incentive received 13                        0.3                          - Capitalised initial direct costs on leases                      (0.2)                          - Net cash used in investing activities                   (18.2)                   (23.1) Cash flows from financing activities Cash proceeds from IPO share issues                          -                     40.0 Share issuance costs of IPO shares                          -                      (7.6) Cash proceeds from share issues (from pre-IPO)                          -                        0.8 Proceeds from share-based awards exercises                        0.2                          - Repayment of principal on lease liabilities 18                      (1.1)                      (2.2) Payment of interest on lease liabilities 18                      (0.4)                      (0.4) Cash paid for lease assignment                      (0.5)                          - Settlement of IP licence payable                      (3.0)                          - Interest and other financing charges 8                      (1.0)                      (0.8) Net cash (used in)/generated from financing activities                      (5.8)                     29.8 Net (decrease)/increase in cash and cash equivalents                   (17.8) 3.5 Cash and cash equivalents at beginning of period 16                     45.8 42.2 Effect of exchange rates on cash and cash equivalents                        0.1 0.1 Cash and cash equivalents 16                     28.1                     45.8 T he accompanying notes are an integral part of these condensed consolidated annual financial statements. The financial statements were approved by the Board of Directors and authorised for issue on 30 March 2026. They were signed on its behalf by: Dr Eben Upton CBE FREng                  Richard Boult Chief Executive Officer and Founder      Chief Financial Officer Notes to the condensed consolidated financial statements For the year ended 31 December 2025   1   General information Raspberry Pi Holdings plc (the "Company") is a public limited company incorporated in England and Wales. The Company's registered office is at 194 Cambridge Science Park, Milton Road, Cambridge, England CB4 0AB, and the company number is 15557387. 2   Basis of presentation and accounting policies Explained below are the key accounting policies of Raspberry Pi Holdings plc and all its subsidiaries (the "Group"). 2.1  Basis of preparation The condensed set of financial information presented for the years ended 31 December 2025 and 2024 do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the year ended 31 December 2024 is derived from the statutory accounts of Raspberry Pi Holdings plc for that year which have been delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or (3) of the Companies Act 2006. The financial information for the year ended 31 December 2025 and the comparative information have been extracted from the audited consolidated financial statements for the year ended 31 December 2025 prepared under IFRS, which have not yet been approved by the shareholders and have not yet been delivered to the Registrar. The report of the auditors on the consolidated financial statements for 2025 was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. These condensed consolidated financial statements are prepared in accordance with UK-adopted International Accounting Standards ("IAS"), with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and with the requirements of the Companies Act 2006 (the "Act"). These condensed consolidated financial statements of Raspberry Pi Holdings plc comprise the results of Raspberry Pi Holdings plc, Raspberry Pi Ltd, Raspberry Pi North America Inc, Raspberry Pi Ireland Ltd and the Raspberry Pi Employee Benefit Trust (the "Group"). These condensed consolidated financial statements have been prepared under the historical cost convention unless otherwise stated. The Group's presentation currency is US Dollars, rounded to the nearest point million. Since all material subsidiaries have US Dollars as their functional currency, there is no foreign exchange upon consolidation and hence no cumulative translation reserve.   2.2  Capital reorganisation On 23 May 2024 Raspberry Pi Holdings plc acquired the entire shareholding of Raspberry Pi Ltd for $288.1 million by way of a share-for-share exchange agreement. This did not constitute a business combination under IFRS 3 "Business Combinations" as both entities were under common control and Raspberry Pi Holdings plc as the listing vehicle did not constitute a business as defined by IFRS 3. No changes were made to the underlying book values of Raspberry Pi Ltd and the Group's reserves were adjusted to reflect the statutory share capital of Raspberry Pi Holdings plc, with difference recorded in a merger reserve. 2.3  Basis of consolidation The condensed consolidated financial statements incorporate the financial statements of Raspberry Pi Holdings plc (the "Company") and its subsidiary undertakings. Subsidiaries are entities over which the Group has control. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. 2.4  Going concern The condensed consolidated financial statements have been prepared on a going concern basis, assuming the Group can meet its liabilities as they fall due. This assessment is supported by access to the Revolving Credit Facility ("RCF"), and strong relationships with key customers and suppliers. Profitability and financial position: The Group reported a profit of $21.7 million for the year. Net current assets were $172.8 million, and net current financial assets totalled $33.1 million. Extension of Revolving Credit Facility: On 5 March 2025, the RCF was extended, increasing available funds to $80.0 million (2024: $40.0 million) and extending the term to 4 March 2029 (2024: 24 April 2027). The facility remains undrawn. Liquidity and cash flow forecasts: The Board's cash flow forecasts and projections confirm the Group can operate within its cash and committed facilities for the period to 30 April 2027. Available liquidity, including both cash and committed facilities, has been considered in this assessment. The Directors have deemed this period to be appropriate for the going concern assessment. No plausible events or conditions beyond the assessment period that may cast significant doubt on the Group's ability to continue as a going concern have been identified. Sensitivity analysis and stress testing: Sensitivities applied to forecasts include a 50% to 75% reduction in higher density (8GB to 16 GB) LPDDR4 SBC and Compute Module products with no mitigations other than executive variable pay applied. Even under this scenario, the Group expects to meet its funding needs for 2026 and 2027, confirming its ability to continue operations. Reverse stress testing: A reverse stress test modelled the sales decline required to exhaust liquidity and breach banking covenants. This scenario was deemed highly unlikely. Conclusion: Based on these considerations, the Board concludes the Group can operate within its committed facilities and cash resources for the foreseeable future. Accordingly, the Directors have adopted the going concern basis in preparing the consolidated financial statements. 2.5  Critical accounting judgements and estimates In preparing these condensed consolidated financial statements, critical judgements in the application of accounting policies can have a significant effect on the financial results. Any changes in critical estimates and assumptions made could materially impact the amounts of assets, liabilities, revenue and expenses reported next year as actual amounts and results could differ from those estimates or those estimates could change in future. 2.5.1  Critical judgement: Capitalisation of internal and external development costs We prioritise in-house development with a small, highly skilled engineering team, releasing new core hardware every three to four years. During the year, our investment included the finalisation of the Raspberry Pi 500+, the ongoing development of Raspberry Pi 6 and related semiconductor products and further microcontroller variants. The Group exercises significant judgement in determining whether internal and external development costs for pipeline products meet the capitalisation criteria within IAS 38 "Intangible Assets". Costs are capitalised only when they are directly attributable and reliably measurable, and relate to future new products that are considered technically feasible and commercially viable and supported by the necessary skilled resources and internal commitment to completion. Forecasted profit margins must exceed capitalised costs. Management makes judgements when these capitalisation criteria are met and continue to be met for active pipeline development projects. The costs associated with the Group's efforts to develop new products are made up of directly attributable internal employee costs for those working on development, costs of external materials and services consumed in development and amortisation of licences (software or designs) used directly in development as per below. $ million 2025 Capitalised 2025  Total   % 2024 Capitalised 2024  Total   % Internal costs                      6.8               20.4           33%                      8.1               17.6           46% External costs                      6.7                 8.8           76%                    12.5               14.6           86% Directly attributable R&D - cash                    13.5               29.2           46%                    20.6               32.2           64% Amortisation                      6.8                 8.2           83%                      6.0                 7.4           81% Depreciation                      0.3                 1.3           23%                        -                   -           - Total directly attributable R&D                    20.6               38.7           53%                    26.6               39.6           67% Overall R&D investment has decreased, with total costs falling from $39.6 million in 2024 to $38.7 million in 2025. Capitalisation of R&D costs in 2025 is 53% of total costs capitalised (2024: 67%). The value of costs being capitalised exceeds amortisation by $12.4 million (2024: $19.2 million). All costs associated with the research phase of projects are expensed as incurred. Any development costs relating to maintaining and fixing bugs in the software are also expensed as incurred. Capitalised employee costs of engineers exclude any share-based payments and termination payments as they are not considered directly attributable to the development projects. 2.5.2  Critical judgement: Identification of cash-generating units ("CGUs") for impairment testing of pipeline development costs Identifying CGUs is a critical step in the impairment review and can have a significant impact on its results. The objective of identifying CGUs is to identify the smallest identifiable group of assets that generates largely independent cash inflows. CGUs are identified at the lowest level to minimise the possibility that impairments of one asset or group will be masked by a high‑performing asset. The Group has two main CGUs: Pi 5 and semiconductors. The Group has assessed that projects within each CGU reflect significant interdependencies, where designs and outputs are shared and integrated, making individual cash flows inseparable without arbitrary assumptions. The recoverability of intangible assets arising from pipeline development activities is materially all part of the semiconductor CGU. The recoverable amount of the semiconductor CGU is assessed based on the collective earnings of all products in the CGU. The remaining products, including cameras and other accessories, do not share the same level of interdependency and are assessed individually for impairment purposes. 2.5.3  Critical estimate: Useful economic lives ("UEL") of intangible assets The Group determines the UEL of intangible assets at initial recognition and reviews them at each reporting date. During the year, the useful life of on-market semiconductors was revised from six to eight years based on updated assessments of expected future use and economic benefits. As a result, the annual amortisation charge decreased by $1.4 million. The historical cost remains unchanged and the remaining cost is now spread over a longer period. 2.5.4  Critical estimate: Net realisable value of inventory The valuation of inventory is a significant area of estimation uncertainty for the Group due to the rapid pace of technological advancements and the risk of product obsolescence inherent in the computer industry. Inventory is measured at the lower of cost and net realisable value, which requires significant management judgement and estimation. In determining net realisable value, the Group evaluates several factors, including market demand and pricing trends, assessing the likelihood of future sales and the impact of declining prices on older inventory. Technological obsolescence is also considered, with management assessing whether inventory remains relevant in light of new product launches and advancements. Additionally, expected selling costs, such as promotional discounts or clearance pricing, are factored into the valuation. The Group reviews inventory balances on a regular basis, taking into account recent sales trends , the ageing of inventory, and the condition of items, including damaged, slow-moving or obsolete stock. Future sales projections over a three-year period, based on management-prepared financial budgets, are used to support these assessments. For the year ended 31 December 2025, the total inventory provision was $6.6 million (2024: $6.2 million). Given the inherent uncertainties, changes in market conditions, technological developments, or consumer preferences could materially impact the carrying value of inventory. 2.5.5  Critical estimate: Taxation Accounting for taxation requires significant judgement in determining taxable profit, tax bases, and the recognition of deferred tax assets and liabilities. Key estimates include interpreting complex tax regulations, assessing potential challenges from tax authorities, and evaluating the recognition of Research and Development Expenditure Credit ("RDEC") claims. Determining the appropriate RDEC claim involves significant judgement in identifying qualifying R&D activities and expenditures. Uncertainties in these areas can lead to variations between estimated and actual credits received. The Group maintains detailed records of R&D activities and consults with external tax advisers to ensure compliance with legislation. Additionally, changes in facts and circumstances between the preparation of these accounts and the final tax submission, expected in approximately nine months, may impact the final tax position. For the year ended 31 December 2025, the Group is eligible to claim the benefit of the patent box regime on income generated from the sale of products that incorporate technology for which the Group received a patent in 2025. Judgement is required to determine the income and costs related to the eligible income. The risk of error has been mitigated through the use of external experts with detailed knowledge of the patent box regime. Any changes in tax laws or interpretations thereof could materially affect future amounts recognised. Whilst there are a variety of possible outcomes management believes that it is reasonably plausible that the actual tax claims submitted could vary to the accounting estimate by approximately $1.5 million in any accounting period. 2.6  Critical accounting judgements and estimates (relating to the IPO) In the prior year, which included the Group's IPO, several non-recurring accounting judgements were required. For 2025, we have retained only those judgements that remain relevant to understanding the 2024 comparative information. 2.6.1  Critical judgement: Determination of the grant date share price and option life for IPO share awards On 11 June 2024, employee share awards were approved and finalised prior to the Company's Admission to the London Stock Exchange. IFRS 2 requires that the fair value of share-based payments is measured at the grant date. Management determined the offer price of £2.80 ($3.56) as the appropriate share price for valuation at that date. The grant date is defined under IFRS 2 as the date when both the Company and participants have a mutual understanding of the key terms of the award, which was confirmed to employees prior to Admission. The fair value of the IPO awards was therefore measured using this offer price. Subsequent increases in share price would have significantly changed the valuation if a later date were used. The resulting IFRS 2 charge is recognised over the three-year vesting period. Management also estimates the expected option life, applying an average of five years based on benchmarking and employee attrition assumptions. For subsequent share awards, the same valuation approach is applied, using the opening share price on the day of grant as the reference for determining fair value. 2.6.2  Critical judgement: Classification of transaction costs associated with the issue of shares The Group incurred $10.3 million in costs related to the IPO, with $7.6 million deducted from share premium, and $2.9 million expensed as non-recurring administrative costs. Costs were classified based on whether they directly related to new share issuance of the broader listing process. Directly attributable costs, such as underwriting, brokerage and advisory fees, were deducted from equity, while expenses for wider listing requirements, such as corporate finance and costs of legal support, were expensed. At the time the costs were incurred, only a limited recovery of input VAT was available, so the full expe...

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